Did the amplifier crash? It seems to be cut in half, but in fact it has doubled dozens of times this month
Editor's Note: This article comes fromHot Wheels Community (ID: FHBT18), Author: Pepe, reproduced by Odaily with authorization.
Hot Wheels Community (ID: FHBT18)
Special Note: This aunt has nothing to do with the Hot Wheels community.
Hot Wheels Community (ID: FHBT18)
, Author: Pepe, reproduced by Odaily with authorization.
There are two major puzzles in the current currency circle: one is when Yuzu will return to the top eight, and the other is whether the world’s boutique market of ampl will really collapse this time, haha.
Special Note: This aunt has nothing to do with the Hot Wheels community.
Hello everyone, I’m Pepe. Since we talked about the key position of Bitcoin at 10,500 in the last issue, hey, it has really broken through. At the same time, there is no blood-sucking market like in the past. At the key point, we seem to have entered a new cycle stage. My personal feeling is that we can be more optimistic in the short term. I am really afraid of heights. It is not a big problem to set a strict stop loss.
In today's mainstream, eos performed brilliantly unlike usual:
It can be seen that the bullish trend of the daily line has come out, and it has also broken through the 200-day moving average. The road to unwinding is one step closer, which is gratifying.
But here, I don't really want to say what will happen to the short-term market, but I may need to pay attention to one problem. If you pay more attention to this round of market, you should be able to find that the counterfeit market is not as consistent as before.
Like link and ada, which performed well before, when the mainstream currencies soared one after another, the trend turned downward instead, and there are also good and bad in defi.
Let me mention pomelo today, and I also want to say this. Sometimes it doesn’t look like it’s going up, but it’s just that the time has not come. It will be very naive logic to judge the quality of the target by the price change at the same time. In addition, the short-term price Changes have nothing to do with what the team does or doesn't do, and whether they follow the latest concept heat, so there is no need to worry about it.
We used to talk about defi, and all kinds of financial loans and mortgages in it, just talking about the concept is a headache, not to mention that the operating threshold is not low. I did not expect that this year, relying on mining and the sharp increase in the market value of several targets, it has inspired the entire circle to defi enthusiasm.
In the same way, when we mentioned stablecoins before, people’s first question was how to make money by being stable. They did not expect such a stablecoin generated by an algorithm to be hyped. When it first came out in 2019, the public did not understand it. It was supposed to match the value of the standard U, but the lowest price fell to 1.99 yuan, basically it didn’t start to take off until June this year.
Regarding AMPL, we also published an introduction 20 days ago:
Is it a "stable currency" if the price triples but the income can increase tenfold? Netizen: It is recommended to apply for the Nobel Prize in Economics
https://www.ampleforth.org/dashboard/
The general meaning is to automatically adjust the supply and demand through the system algorithm, so that the currency price tends to 1U.
The specific implementation mechanism will make an adjustment to the supply of the entire network at 10:00 a.m. Beijing time every day:
When the price of ampl is greater than 1.05U, additional issuance is equivalent to expanding the supply and prompting the price to return.
This additional issuance ratio needs to be calculated according to the official website data:
Because the system is all executed on smart contracts, the price of how to set the ratio is not directly obtained from the current exchange price, but is provided by the oracle machine from outside the chain, and it is the average price in the past 24 hours.
Additional issuance ratio = ((average price of oracle machine - target stable price)/10)%
If calculated according to the price in the above figure, the current increase ratio is 7.94%, that is, no matter how much the price changes on this day, 100 coins will become 107.94 coins by the next day after the supply is adjusted.
When the price of the amplifier is less than 1.05U and greater than 0.95U, the system will neither increase nor reduce.
When the price of ampl is less than 0.95U, the total supply will be reduced once a day, and the ratio calculation is consistent with the above.
That is to say, if the price is higher than 1.05U, and the greater the deviation, the more the system will issue more, and vice versa, the lower the price, the more coins will be reduced on the book.
And as long as it is above 1.05U, it has been in the state of additional issuance, so here we need to look at its market value changes, not just the price.
Therefore, although you can see that the price has been nearly halved in the past week:
But its market value growth is still in an upward cycle:
In the past 30 days, the market value has increased from 35 million to 1.36 billion (the official website here may display the total market value, and the current market value is 490 million U.S. dollars according to cmc), and the ranking has already squeezed into the top 30. If you look at the high point of the previous few days Calculated, I am afraid that the income of holding a month has reached 50 times. Even if the current price is cut in half, compared with those who entered the market ten or twenty days ago, they can still have excess and hidden income.
Transferred from Bihu tesla
And such an exaggerated increase in market value, in addition to the above factors that can make the adrenaline of leeks soar, may also be due to:
1. 4chan driver
I don’t know if anyone still remembers the origin of the 4chan website and the encryption world we talked about before, an anonymous forum. Most of its financial sector/biz.
image description
One of the emoticons spreading overseas
Link and ren, which broke out this year, have all been screened on 4chan. Therefore, some analysts believe that 4chan has become one of the driving forces of this market, especially for projects with some magical characteristics, coupled with meme expression packs, forming a trend , fueling the price, the momentum is no less than the promotion of Chinese capital (it may also be the imagination of overseas people) and the blessing of various institutional funds.
2. Riding on the wind of defi
Defi basically started to break out in June this year. Uniswap has almost replaced the traffic gathering places of centralized exchanges, and the current liquidity of AMPL ether trading pairs is the first in the whole platform, and even the daily trading volume of uni is half They are all contributed by ampl, so one can imagine its overseas attention:
It seems that there was a joint liquidity reward activity with uni before, which can be regarded as boosting the price of ampl.
3. Variety of gameplay
One of the more interesting aspects of ampl is that it can attract traders with completely different strategies. For holders, it is very cool to hold dozens of times a month; for those who like to trade, because it will have a psychological anchor for stablecoins Set, buy low and sell high, and the arbitrage space before and after the daily issuance of coins, looks good, especially from the past month's market, the price volatility is quite large, and it is also full of temptation for those who make contracts, so you say There is also a reason why it is so popular.
From this point of view, one of the characteristics required to become an Internet celebrity coin is not only being able to attract some stakeholders, but also being able to attract investors of different levels in this circle, whether it is hold or chasing ups and downs, all To make them happy, it is considered a success.
The above three items are some of the factors that I think are the source of his family’s popularity in the past month. I have asked what will happen if a project like this is opened for imitation. Now it seems that Internet celebrities are still difficult to copy, not to say that a simple copy of the code will be enough Okay, for some coins with similar models that may appear in the future, especially for domestic leeks, we still need to pay more attention to risks.
Another question, I mentioned in the previous article that this kind of algorithm can be called a stable currency with such large fluctuations, which is a bit ridiculous, but I also saw a saying when looking through some materials that ampl is a kind of elasticity currency.
From this perspective, I seem to understand why overseas are comparing it with Bitcoin. There are even some people who think that if the price is maintained at a certain level and does not continue to collapse, it is not surprising that the market value will enter the top ten, which may be a few weeks. things:
epilogue
However, when writing this article, I saw that the price of ampl has been falling. After all, there are too many short-term profits. The only risk now is to fall below 0.95U. At that time, I am afraid that the real collapse will begin.
At present, it seems that it is still impossible to make a conclusion. Either continue to break through and surpass the market value of the big pie, or the death spiral will return to zero. Everything is possible.
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